Descending Triangle
BearishContinuationBeginnerA flat floor, falling highs. Every bounce is weaker until the floor cracks.
Verdict: SkipBitcoin 4H: 27 trades, won 41%, avg trade −1.0% vs random day −1.0%. Backtest
Price falls to a level and bounces. Buyers defend it, for now.
step 1/6
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | A candle CLOSE below the flat support (the lower of the two lows), before the two lines meet. |
| Cancelled if | Price trades above the last lower high before the breakdown. |
| Target | Triangle height, projected from the breakout |
3 common mistakes
- Shorting the floor before it breaks: until then, buyers are winning there.
- Calling it a triangle when the second high is barely lower than the first.
- Trading a break that comes long after the lines have already met.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 | 27 | 41% | −1.02% | −0.99% |
| US large caps (50) · 1D · 2016-2026 | 209 | 41% | −1.89% | −1.58% |
Verdict: SkipLost money on average in every market tested.
pattern −28%random −27%
pattern −395%random −330%